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Wholesalers supplying the hospitality industry do not qualify for business rate relief
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The FWD and SWA have asked businesses to settle outstanding debts for stock bought prior to the lockdown
Wholesalers are urging their hospitality industry customers to use their government grants to pay for goods purchased before the lockdown.
The Federation of Wholesale Distributors and the Scottish Wholesale Association this week wrote to more than 350,000 restaurants, cafés, pubs, hotels and leisure facilities asking them to settle outstanding debts for stock bought prior to the lockdown and their enforced closure.
“When the time comes to re-open we will be there, along with our supplier partners, to work alongside you and help reignite our economy,” the letter said.
Frontline hospitality businesses that are eligible will begin to receive grants of up to £25,000 via their local authorities this week.
Companies with a rateable value of less than £51,000 will be eligible for cash grants of up to £25,000 per property.
Businesses with a rateable value of up to and including £15,000 will receive £10,000.
In addition to this, the government has given a 12-month business rates holiday to all retail, hospitality and leisure businesses in England.
Wholesalers supplying the hospitality industry do not qualify for business rate relief.
The FWD and SWA are appealing for some of that money to be allocated to their members, many of which are now facing a cashflow crisis.
The letter goes on to say: “Paying outstanding invoices for goods you have already received will allow us to pay our suppliers and keep the wheels of this industry turning. The majority of our businesses are regional and independent, and whatever size they are, all have relationships with you which go far beyond delivery. If wholesalers can’t purchase new stock, you will lose more than that relationship – you will lose the flexibility, the knowledge of your businesses, and the diversity in your supply options that wholesalers offer.”
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